In its just published annual report, Kvaerner ASA says that "developments at the Kvaerner Philadelphia Shipyard have been particularly positive."

Following the recent signing of contracts for the delivery of two containerships, the yard has now started to build a series of 10 (46,000 dwt) product tankers for the Jones Act market.

Kvaerner says plans are being finalized to sell Kvaerner Philadelphia Shipyard to a new group provisionally named American Shipping Corporation, which will be established as a wholly owned subsidiary of Kvaerner ASA. The new group will build and own product tankers, but the ships will be leased out to American shipowners and tanker operators on a bare-boat charter basis.

As a first step towards establishing American Shipping Corporation, a proposal will be presented to shareholders of Kvaerner ASA at the annual general meeting on March 31, 2005, to approve an internal transfer of Kvaerner Philadelphia Shipbuilding, Inc from the Kvaerner, Inc subsidiary to the holding company Kvaerner ASA.